Colorado

Colorado LLC

A fiscally transparent domestic company or potentially tax free offshore jurisdiction

Colorado is one of the most favourable States in which to register either a domestic or non-resident limited liability company (LLC) with very favourable LLC legislation and an efficient Division of Corporations.

Synopsis

A Mid-Western State world famous for the Rocky Mountains and its general scenic beauty, it has a population of approximately 5,200,000, the capital is Denver and is about the size of the United Kingdom and Ireland put together. Traditionally agricultural but is now very much a high end service and technological hub with one of the lowest crime rates in the United States.

The United States of America

The World’s predominant nation in economic and military terms with a strong tradition of democracy and social inclusion although certain economic groups, primarily African Americans and Hispanics, have significantly lower standards of living and educational attainment. On a GNP per capita basis it is one of the World’s ten most wealthy nations. Unemployment is under control despite the economic downturn. Geographical area: 3,618,770 sq. miles or approximately 36 times the size of the United Kingdom. Population: 313,900,000 (July 2012).

Star Ratings

Corporate registration efficiency

5

Cost

5

Confidentiality

4

Local Banking facilities

5

Legal system

5

Political stability

5

Reputation

5

colorado

Location

Colorado occupies most of the Southern Rocky Mountains together with the north-eastern portion of the Colorado plateau and is surrounded by Wyoming to the northwest and to the Midwest by Nebraska and on the south by New Mexico and Oklahoma, on the west by Utah, and Arizona to the southwest.

About US Non-Resident Limited Liability Companies

Non-resident LLC’s are fiscally transparent and based upon ‘partnership’ law but nevertheless separate legal entities, so the tax base literally depends on where the ‘members’ (partners) and/or manager(s) are fiscally based. Therefore, for those who want a tax free/holding company then a US NR LLC administrated and/or managed from a tax free base will achieve this aim and at a cost generally no higher than using a traditional IBC style Tax Haven Company. Alternatively, for those seeking a prestigious company for active ‘trading’ but not wanting the stigma that may attach to certain well know low tax jurisdictions such as Cyprus or Gibraltar (12.5% and 10% respective corporate tax rates), a US NR LLC can register as a ‘branch’ in such locations fully benefiting from both the local corporate taxes and (generally) tax treaties but WITHOUT being an actual Cypriot or Gibraltar company. Further, NR LLC’s also have the benefit of being governed by Colorado state law which is considered by many corporate lawyers to very business friendly.

About US Resident Limited Liability Companoes

The SCF Accountancy & Law can also offer fiscally transparent domestic managed and non-managed LLC companies, which have as their unique benefit the ability to be owned (unlike US sub-chapter ‘S’ corporations) by non US citizens or Green Cardholders. In short, such a structure allows for non-US fiscal residents to avoid US double taxation on their profits (i.e. at both an individual and corporate level) and hence ensures maximum profitability whilst operating in the United States. In the case of Colorado, the local corporate tax rate is a flat rate tax of only 4.63% per annum plus federal taxes, which makes it one of the most attractive States in which to set-up domestic company.

Domestic Corporate Tax

The domestic corporate state tax is 4.63% plus federal corporate taxes which vary between15% to 35% depending on turnover.

Personal Tax

Colorado's individual (personal) income tax rate is also a flat 4.63% plus federal individual taxes which vary from a graduated 10% to 35% depending on income level.

Administration & Accountancy Services

Managed & Non-Managed Companies

The SCF Accountancy & Law can provide Colorado companies either in a non-managed or managed format depending on client needs and requirements.

Fully Managed & Branch Registrations

Where required SCF Accountancy & Law can provide fully managed services and even branch registration in another jurisdiction where tax treaty protection is required. For further details please consult with a SCF sales consultant

Set-Up & Annual Maintenance Fees

Please request the separate Colorado Quotation Leaflet

The Ownership of Colorado LLC Companies

‘Overhead’ Discretionary Trusts or Private Interest Foundations

For tax planning reasons, normally pertaining to anti-avoidance provisions in a beneficial owners ‘home’ country or place of fiscal residence, and/or because of a need to ‘ring fence’ assets many clients owning a Colorado company (especially in non-resident format) select to have it owned not be themselves but by an overhead discretionary trust or a Jersey Private Interest Foundation, Seychelles Private Interest Foundation or a Liechtenstein Private Interest Foundation (locally known as a Stiftung).

For more information on discretionary trusts and/or private interest foundations please refer to the trust and private interest foundation sections.